HUD 5261 Rental Assistance Demonstration- Instruction to Applican

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Overview

Instructions
MR App Form
Financing Letter of Intent
Choice Mobility Let Agreement

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Sheet 1: Instructions

RENTAL ASSISTANCE DEMONSTRATION
Instructions to Applicants: Owners of Mod Rehab Projects
Paperwork Reduction Notice: The information collection requirements contained in this notice have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3520). Public reporting burden for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions, searching existing data sources , gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This collection of information is required for applying to the Rental Assistance Demonstration pursuant to PL-112-55 and HUD requirements as explained in PIH Notice PIH-2012-032. The information will be used to provide HUD with sufficient information to enable a determination that the proposed conversion is financially feasible and that HUD statutory and regulatory requirements have been met. Please address any comments or questions on this data collection to rad@hud.gov and the appropriate personnel will respond to your inquiry in a timely manner. HUD may not collect this information, and you are not required to complete this form unless it displays a currently valid OMB number. Limited confidentiality is assured.
Note: This Excel Spreadsheet has multiple worksheets listed in the tabs below.  Depending upon each worksheet’s applicability to your application, you may be required to fill out several of these worksheets in order for HUD to consider your application complete. To navigate amoung the worksheets, click the indivdual worksheet tabs at the bottom of this window. If no worksheet tabs are visible, select "Options ..." from the "Tools" menu. In the dialogue box, select the "View" tab and then "Normal".
	U.S. Department of HUD, Form HUD-5261
	OMB Approval Number 2577-xxxx (Issue Date x/xx) (Expires x/xx)
INTRODUCTION
1	In accordance with Notice PIH-2012-32, this Excel-based Application Form shall be used by owners of Mod Rehab projects in submitting applications under Section 2.2 of the Rental Assistance Demonstration (RAD).
2	As part of the application, the user will be completing both an Operating Pro-Forma and a Development Budget for the proposed conversion. An application cannot be submitted (see "fatal error" message, below) if the Pro-Forma or Development Budget do not balance or otherwise contain error messages.
GENERAL INSTRUCTIONS
1	Complete one Application Form for each Mod Rehab project proposed for conversion.
2	Upon completion of the application, print out the associated attachments.
3	Submit the completed application, along with the signed attachments (where applicable), and email to RADApplication@hud.gov.
HOW THIS EXCEL WORKBOOK WORKS
1	Fill in all items that appear in grey highlight.
2	Bright blue squares containing a white question mark offer additional guidance. Place the mouse cursor over the square to read this guidance.
3	Note that, for the purposes of reviewing applications, HUD has standardized some of the financing assumptions. These benchmarks/assumptions are only for the purposes of reviewing the applications; actual lender underwriting may be different. If an entry trips one of these assumptions, an error message will appear, indicating either that the user provide an explanation or that the user enter an amount that complies with the standardized assumption.
5	If a "fatal error" message appears in red, the application cannot be submitted. Review the fatal error message and correct the input(s) as needed. The fatal error message will disappear once the input(s) has been corrected.
6	Once all information has been entered, print the following form-generated attachments (where applicable): • Financing Letter of Interest/Intent. This is a document that a lender or equity investor must sign. A PDF copy of the signed document must be submitted with the RAD Application. It is designed to give the lender or equity investor information on key aspects of the proposed transaction. A separate Financing Letter of Interest/Intent must be submitted for each proposed source of funding. Failure to submit all of the required Letters of Interest/Intent with the application will result in its rejection. • Choice-Mobility Letter Agreement. This is a document that will be signed by both the PHA that is providing choice-mobility vouchers and by the Mod Rehab project owner whose RAD project will receive the choice-mobility vouchers. A PDF copy of the signed document must be submitted with the Application in order to qualify for the choice-mobility ranking factor. These attachments will include the name of the authorized representative identified in the application. Additionally, the Financing Letter of Interest/Intent will include both a Statement of Sources and Uses and a Financing Pro-Forma, generated from the information submitted on the Application Form. Note that the Application Form, along with all the attachments, must be submitted electronically as part of the submission package. The full list of attachments needed will be automatically generated at the end of the Application Form once it has been completed.

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Sheet 2: MR App Form

Rental Assistance Demonstration (RAD)											U.S. Department of HUD, Form HUD-5261
Mod Rehab Application for Conversion											Office of Public Housing, Office of Multifamily Housing
											OMB Approval Number 2577-xxxx (Issue date x/xx) (Expires x/xx)
There are several explanation boxes that extend the full width of this form. Increase or decrease the height of the box as needed (click to the left on the horizontal line below the row number, then drag the line up or down as needed).
Section 1: Owner and Project
	Legal name of ownership entity
	Owner Contact Information:
This is the person that HUD should contact with any questions about the proposed RAD transaction. ?	Contact Person
	Title
	Mailing Address
	City
	State					Enter two character State code
	Zip Code
	Telephone
	Email
	Identify who will sign the certifications at the end of this form, on behalf of the owner / applicant
	Authorized Owner Representative
	Title
	Date Signed						Date owner will sign this form
	Project Name
	Project Street Address
	City
	County
	State					Enter two character State code
	Zip Code
Contract Number: Enter the 15 character Housing Assistance Payments (HAP) contract number. The HAP contract number will be in this format: XX999 indicating the PHA MR indicating a Mod Rehab contract 9999-9999 contract number ?	Mod Rehab Contract Number
	Contract Effective Date
	Contract Expiration Date
Section 2: Type of Conversion
	Are you requesting conversion to PBRA or to PBVs?
	Are you requesting a Choice-Mobility exemption?
Section 3: Unit Mix and Rents
Enter the current rent schedule from the Mod Rehab contract and information for the assisted and unassisted units at the
project post-conversion.
Exhibit A of the Mod Rehab contract contains (1) units under contract by bedroom type, (2) Contract Rents for each bedroom type, and (3) Utility allowances for each bedroom type. ?	Mod Rehab Contract Units				0BR	1BR	2BR	3BR	4BR	5BR+	Total
	Units under Contract										0
	Units to Convert										0
	Current Contract Rent Levels										$0
	Current Utility Allowance										$0
	Other Affordable Units
	Units										0
	Rents										$0
	Market Rate Units
	Units										0
	Rents										$0
	Total Units Post-RAD				0	0	0	0	0	0	0
	Total Monthly Rent				$0	$0	$0	$0	$0	$0	$0
De Minimis Reduction Allowance
The table below compares the units currently under the Mod Rehab contract, the number proposed for conversion, the number proposed to be reduced, and the applicable de minimis threshold. If applicable, indicate the number of reductions by eligible category in the rows that follow, along with an explanation in the accompanying text box.
	Current Units Under Mod Rehab Contact		Total Units Proposed for Conversion		Units Proposed to be Reduced		de minimis threshold		Units above the de minimis threshold
	0		0		0		5		0
No entry or explanation necessary
	0	Units have already received Section 18 Demolition-Disposition approval from HUD
	0	Reconfiguring efficiency apartments
	0	Facilitating social service delivery
	0	Units vacant for more than 24 months
	0	Total
Section 4: Capital needs and Replacement Reserves
The Owner is not required, at the time of application, to have completed an updated, third-party Physical Needs Assessment (PNA). The Owner can estimate its capital needs and explain the basis for its estimates in the narrative box below. If the project includes market or other units, include the capital needs for those units as well in these estimates. ?	Enter the most recent estimate of capital needs for the project, broken down by Immediate, Short-term, and Long-term needs. If these break-downs are not available, provide reasonable estimates.
					Total			Per Unit
Include all rehabilitation or constructions costs, site improvements, general requirements, contractor overhead, contractor profit, P&P Bond or LoC, Contingency, Permits & Impact Fees, and other costs. If short-term needs will be addressed in initial repairs, include them in "Year 1" rather than "Years 2-5." ?	Year 1 (Immediate)				$0			$0
	Years 2-5 (Short-term)				$0			$0
	Years 6-20 (Long-term)				$0			$0
Please explain how you have arrived at these estimates.
Explanation
The application calculates a "formula amount" for both the initial deposit to replacement reserve (IDRR) and the annual deposit to replacement reserve (ADRR). For purposes of the application, you must enter an amount ("Your Proposal") that is not less than these formula amounts. The formula for the IDRR is as follows: the amount of short-term needs minus (5 x ADRR). (This formula is intended to insure that sufficient funds are available over the initial five years to cover identified needs.) The formula for the ADRR is as follows: total of needs from years 2-20, divided by 19. ?	Replacement Reserve Funding
	Enter the current balance of the project's Replacement Reserve and the proposed Initial Deposit and
	Annual Deposit to the Replacement Reserve
	Current Replacement Reserve Balance				$0
					Formula Need			Proposed
	Initial Deposit to Repl. Reserve (IDRR)				$0			$0
	Annual Deposit to Repl. Reserve (ADRR)				$0			$0
Section 5: Existing Debt
	Existing First Mortgage Loan:
	Origination Date
	Original Loan Amount
	Unpaid Principal Balance						as of
	Interest Rate					per year
	MIP / Other Credit Enhancement					per year
	Amortization Term					years
	Maturity Term					years
	Calculated Monthly P+I				$0.00
	Monthly P+I
	Current Monthly MIP
	If FHA Insured, please provide the following information:
If the Mod Rehab project has existing FHA-insured financing, it will have an FHA project number and an iREMS ID number. ?			FHA Project Number:
	Will this loan be refinanced in conjunction with the RAD Conversion?							Yes
	Existing Subordinate Loan:
	Origination Date
	Original Loan Amount
	Unpaid Principal Balance						as of
	Interest Rate					per year
	MIP / Other Credit Enhancement					per year
	Amortization Term					years	0.0	years
	Maturity Term					years	0.0	years
	Calculated Monthly P+I				$0.00
	Monthly P+I
	Current Monthly MIP
	Will this loan be refinanced in conjunction with the RAD Conversion?							No
	By signing this form, the applicant certifies that this lender has agreed to subordinate this loan to the new financing
Section 6: Pro Forma Post-RAD Cash Flow
Enter three-year historical cash flow data and proposed pro forma data (enter all numbers as positive values)
Edit the FYE dates as needed. ?				Fiscal Year End:	2010	2011	2012	Post-RAD
	Gross Potential Rents (Apartments)				$0	$0	$0	$0
	Vacancy Loss (Apartments)				$0	$0	$0	$0	enter %
	Bad Debt (Apartments)				$0	$0	$0	$0	enter %
	Gross Potential Rents (Commercial)				$0	$0	$0	$0
	Vacancy Loss (Commercial)				$0	$0	$0	$0	enter %
	Bad Debt (Commercial)				$0	$0	$0	$0	enter %
	Late/NSF charges				$0	$0	$0	$0
	Damage Charges				$0	$0	$0	$0
	Laundry/Vending				$0	$0	$0	$0
	Concessions (Other)				$0	$0	$0	$0
	Interest Income				$0	$0	$0	$0
	Other Income				$0	$0	$0	$0
	Effective Gross Income				$0	$0	$0	$0
	Administrative Salaries and Expenses				$0	$0	$0	$0
	Property Management Fee				$0	$0	$0	$0
	Tenant Services				$0	$0	$0	$0
	Total Utilities (Owner Paid)				$0	$0	$0	$0
	Garbage and Trash Removal				$0	$0	$0	$0
	Maintenance Salaries				$0	$0	$0	$0
	Protective Services				$0	$0	$0	$0
	Maintenance Supplies / Contract				$0	$0	$0	$0
	Other Operating & Maintenance				$0	$0	$0	$0
	Real Estate Taxes				$0	$0	$0	$0
	Property / Liability Insurance				$0	$0	$0	$0
	Other taxes and insurance				$0	$0	$0	$0
	Total Operating Expenses				$0	$0	$0	$0
	Replacement Reserve Deposit				$0	$0	$0	$0
	Net Operating Income				$0	$0	$0	$0
	Existing First Mortgage Debt Service
	Principal and Interest				$0	$0	$0	$0
	MIP / Other Credit Enhancement				$0	$0	$0	$0
	Existing Other Debt Service:
	Principal and Interest				$0	$0	$0	$0
	MIP / Other Credit Enhancement				$0	$0	$0	$0
	Historical Cash Flow				$0	$0	$0
	Total Available For New Debt Service (NOI, less ongoing debt service payments)							$0
	No explanation is required.
Explanation
Section 7: New First Mortgage Loan Sizing
	Are you proposing to take out a new first mortgage loan for this project?
	Is FHA insurance proposed?
	Interest Rate % per Year
	Mortgage Insurance Premium %
	Amortization Term
	Maturity Term
	Debt Service Coverage Ratio
	Maximum Supportable Mortgage Loan				$0
	Proposed Mortgage Loan Amount
	Calculated Annual Debt Service				$0
	Post Conversion Debt Service and Cash Flow Summary
	Net Operating Income (from Section 6)					$0
	New First Mortgage Debt Service					$0
	Ongoing Debt Service (from Section 5)					$0
	Operating Cash Flow					$0
Section 8: Pro Forma Sources and Uses of Funds
	Sources of Funds
	New First Mortgage Loan					$0
	Existing Replacement Reserve Balance					$0
	Existing Balance in Other Escrow Accounts					$0
	Low Income Housing Tax Credit Equity - 4%					$0
	Low Income Housing Tax Credit Equity - 9%					$0
	Other #1					$0
	Other #2					$0
	Other #3					$0
	Other #4					$0
	Other #5					$0
	Other #6					$0
	Total Sources of Funds					$0
	Uses of Funds
	Acquisition Costs
In many cases, the covered project will not have any acquisition costs. If you will have acquisition costs, make sure that you have identified sources of financing, and that the acquisition costs are acceptable to your lender(s). ?	Building and Land Acquisition				$0
Pre-populated based on your responses in Section 5. ?	Payoff Existing Loans (from Section 5)				$0
Enter other acquisition costs, if applicable. ?	Other Costs				$0
This amount is drawn from your input for immediate capital needs in Section 4. If short-term needs will be addressed in initial repairs, include them in "Year 1" rather than "Years 2-5." ?	Construction Costs				$0
Include the costs associated with any relocation, if applicable. ?	Relocation Costs				$0
	Professional Fees
Includes A/E fees to design project, prepare specifications, carry out inspections during construction, etc. ?	Architecture & Engineering				$0
Includes cost of PCA for the project. ?	Physical Conditions Assessment				$0
Legal fees may be incurred in submitting the application (and necessary certifications) and submitting the Financing Plan, and will be incurred in closing the transaction. Legal fees in establishing the single-asset entity to hold the project post-conversion (a lender will likely require this) would normally be considered "Organizational Costs" (see below). ?	Borrower's Legal Counsel				$0
Many lenders require the borrower to pay fees for the lender's attorney. ?	Lender's Legal Counsel				$0
Includes cost of feasibility studies related to development of the project. ?	Feasibility Studies (LEAN Costs)				$0
Includes cost of environmental reports related to development of the project. ?	Environmental Reports				$0
Includes cost of appraisal or market study as may be required by lender. ?	Appraisal / Market Study				$0
Includes cost of accounting services during development of the project, for example for a cost certification audit. ?	Accounting				$0
Includes cost of surveys related to development of the project. Lenders typically require an as-built survey after construction completion. ?	Survey				$0
Enter other professional fees, if applicable. ?	Other Costs				$0
	Loan Fees and Costs
Includes cost of the initial (up front) Mortgage Insurance Premium on an FHA-insured mortgage loan. Ask the lender for an estimate. ?	FHA MIP				$0
Includes standard FHA application fee, also sometimes called an examination fee. ?	FHA Application Fee				$0
Includes standard FHA inspection fee. ?	FHA Inspection Fee				$0
Includes fee charged by lender related to financing of the project. Also see "Lender's Legal Counsel" above. Note that some lenders break the financing fee into components, such as an origination fee, a placement fee, and a processing fee. ?	Financing Fee				$0
Includes costs associated with establishing the legal entity that will own the project after conversion. ?	Organizational Costs				$0
Title insurance premium. Check with your lenders regarding the amount of title insurance that will be required (typically, coverage will be required at least equal to the original principal balances of all loans). ?	Title Insurance/Exam Fee				$0
Includes fee charged for recordation of any legal documents that must be placed in the local land records. This will include the RAD Use Agreement and all mortgages or deeds of trust. ?	Recordation Fee				$0
Includes payment for the closing escrow agent. ?	Closing Escrow Agent Fee				$0
Includes penalty or premium charged for prepayment of existing loan. ?	Prepayment Penalty/Premium				$0
If the project has accounts payable that will not be paid as of the closing date, you will need to make arrangements to pay those payables at or prior to the closing. ?	Payables				$0
Includes the interest paid on the construction loan during the development period. When estimating construction interest, make a month by month estimate of sources and uses to determine the amount that will need to be drawn on the construction loan each month, and remember to account for the period after construction completion and prior to closing of the permanent loan. If you are utilizing a construction loan, be sure that your sources and uses of funds properly account for rental revenue and operating expenses during the construction and lease-up period (either by showing net rental income as a source of funds, by showing net expenses as a use of funds, or by showing income as a source and expenses as a use). ?	Construction Interest				$0
Includes any fees paid to obtain the construction loan. This could include an origination fee (points) and costs to cover the construction lender's attorney fees. ?	Construction Loan Fees				$0
Includes the cost of issuing bonds (4% tax credits are available only with tax-exempt bonds, and taxable bond financing may be an efficient approach for certain larger projects). Talk to bond counsel to obtain an estimate of those costs. ?	Cost of Bond Issuance				$0
Include other loan fees and costs, as applicable. ?	Other Costs				$0
	Reserves
The amount of the IDRR varies based on the lender's minimum reserve balance requirements, the stream of annual long term capital needs from the PCNA, and the annual reserve deposit level. Some projects will require a large IDRR, and others may require a small IDRR or no IDRR. ?	Initial Deposit to Replacement Reserve				$0
If your permanent loan will be funded at the initial closing, this line item should contain an allowance for any temporary loss of NOI during the rehab and stabilization period. Temporary loss of NOI could occur because of needing to hold units off line for rehab, and/or because operating expenses may be unusually high during rehab. ?	Initial Operating Deficit Escrow				$0
Some lenders may require an operating reserve to guard against potential negative cash flow over the loan term. ?	Operating Reserve				$0
Lenders typically require that tax and insurance expenses be escrowed. Check with your lender regarding initial escrow funding. ?	Tax and Insurance Escrow				$0
Include other reserves, as applicable. Some lenders may require additional reserves (for example, a Debt Service Reserve). ?	Other Costs				$0
	Developer Fee
For non-LIHTC transactions, the RAD Developer Fee may be up to 10 percent of the total development budget (all hard costs and reasonable soft costs), less developer fee and reserves and less any acquisition costs in non arms-length acquisitions, e.g., transfers of property title to related or wholly-owned entities for the purpose of meeting single asset entity ownership requirements. For LIHTC transactions, RAD permits a developer fee up to the lower of (a) 15% of total development cost and (b) the amount allowed by the state LIHTC allocating agency. ?	Developer Fee				$0
	Total Development Cost				$0
Section 9: Projects Utilizing Low Income Housing Tax Credits ('LIHTCs')
You are not proposing to use LIHTCs. Skip this section.
RAD allows PHA applicants to propose use of 9% LIHTCs without requiring that the PHA already hold a LIHTC Reservation letter. In such cases, the PHA must provide information on the QAP application timeline and demonstrate recent success in obtaining 9% LIHTCs. If a CHAP is issued, then based on this information, HUD will establish a property-specific milestone date, by which the PHA must have received a LIHTC Reservation letter. In addition, applicants proposing to utilize 9% credits must include a letter from the credit issuing authority- see the RAD Notice for detail. If the PHA is unable to secure such a letter from the credit-issuing agency, it must document its efforts to do so and must submit a self-scored QAP application. ?	Do you have a LIHTC reservation?
Briefly discuss the application submission and approval timing that is provided under the current QAP. Please provide sufficient detail that HUD can understand when you will submit an application, when you will be notified regarding selection, and when a LIHTC Reservation letter would be issued to you.
Discussion of QAP timing
RAD requires that you demonstrate recent success, internally or through development team partners, in obtaining 9% LIHTCs. Below, briefly discuss your capacity and experience in obtaining 9% LIHTCs from the relevant State allocating agency.
Demonstration of recent success obtaining 9% LIHTCs
Do you have a letter from the credit-issuing authority as described in the RAD Notice?
Provide evidence that the applicant diligently attempted to secure such a letter
Efforts to secure letter from credit-issuing authority
RAD requires that you attach a self-scored QAP application. Below, briefly discuss why you believe that a QAP application for the subject project, at the indicated score, is likely to receive a 9% LIHTC award.
Likelihood of obtaining 9% LIHTCs
Section 10: Ranking Factors
1)	Are you requesting the Ranking Factor for Choice-Mobility?
a)	Are you receiving choice-mobility vouchers?
2)	Are you requesting the Ranking Factor for Green Building and Energy Efficiency?
3)	Do you want to designate this project as your priority project?
	By signing this application, the applicant certifies that the owner or its affiliates has not submitted another Mod Rehab RAD application for which it is claiming priority project status. If an owner or its affiliates submits more than one Mod Rehab RAD application in which it is claiming priority project status, all applications will be rejected. Below, if applicable list all projects under Mod Rehab contracts that are controlled by the owner or its affiliates of the subject project:
		Project Name			Mod Rehab Contract number
	1)
	2)
	3)
	4)
	5)
Section 11: Narratives
Provide written responses in the grey highlighted rows below. Please limit each responses to 200 words.
Briefly describe the land, location / neighborhood, and physical plans for the project.
Description
Discuss any known environmental or building product risks such as lead based paint, asbestos, PCBs, flood zone status, aluminum wiring, and fuel storage tanks (whether underground or above ground), along with associated remediation measures.
Explanation
Discuss any needed accessibility modifications, including any rehabilitation mandated by 24 C.F.R. Section 8.23. ?	Discuss any needed accessibility modifications.
Explanation
Discuss any known market competitiveness issues, such as small unit sizes or limited on-site parking, and how the conversion plans to address these issues.
Explanation
Discuss any proposed relocation plans for the project.
Explanation
In the Financing Plan, the Owner or proposed ownership entity must demonstrate previous successful experience (within the last several years) with properties requiring similar types and levels of development, rehabilitation, ownership, and operational capabilities. Capacity and experience can be demonstrated with existing Owner staff and/or by adding relevant expertise to the development team. HUD's decision regarding capacity and experience will be made at the time the Financing Plan is reviewed. ?	Discuss the capacity of the development team to undertake the proposed conversion.
Explanation
Section 12: Application Validation
	The attachments indicated 'Yes' below must be included in your electronic application package. Incomplete application packages will be rejected.
	Yes	Mod Rehab Contract, including Exhibits
	Yes	Compiled comments received from residents and description of how comments are addressed in conversion plan
	No	Choice-Mobility Letter Agreement
	No	Financing Letter of Intent for each proposed loan, grant, or equity contribution
	No	Letter from PHA agreeing to administer PBVs
	No	9% LIHTC Reservation Letter
	No	Letter from credit-issuing authority
	No	Self-Scored QAP Application for 9% LIHTCs
Section 11: Certification
	I hereby certify to the following: (1) that I have the requisite authority to execute this application on behalf of the owner; (2) that HUD can rely upon this certification in evaluating the Application, (3) that I acknowledge that I have read and understand PIH Notice 2012-32 (the "Notice"), which describes the Rental Assistance Demonstration (RAD) (the "Program"), and agree to comply with all requirements of the Program or Notice; (4) that all materials submitted in association with the application are accurate, complete and not misleading; (5) that the application meets all applicable eligibility requirements for the Program set forth in the Notice; (6) that neither the Applicant, owner, the management agent of the Project, or any Principal (as defined in HUD Form-2530) is currently debarred or suspended from participation in any federal program, has a delinquent federal debt, has any litigation of other claim pending or threatened, or has any judgement or lien in favor of the government of the United States of America or any agency or instrumentality; (7) that, if selected for award, the owner will comply with the fair housing and civil rights requirements at 24 CFR 5.105(a) (general requirements) and will affirmatively further fair housing; and (8) that, if selected for an award, the owner will comply with all provisions of HUD’s Commitment to Enter into a HAP (CHAP), which shall indicate the HUD-approved terms and conditions for conversion of assistance, or will indicate to HUD within 15 days that it is refusing the terms of the CHAP and withdrawing from RAD participation.
	Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties (18 USC Sections 1001, 1010, 1012; 31 USC Sections 3729, 3802)
	By ()
						Date: January 00, 1900
	Authorized Signature:

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Sheet 3: Financing Letter of Intent

If required, this worksheet should be printed, signed and attached as a PDF to the application email.
Identify the lender firm / equity investor that will sign the Financing Letter of Interest/Intent
ABC Mortgage Company
Identify the person who will sign on behalf of the lender / investor:
Pat Winslow		President			02/03/2012
Name		Title			Date Signed
Attachment 2D – Financing Letter of Interest/Intent for Mod Rehab Projects
RAD Application for
Units	0
Average Bedroom Size	0.00
Pro Forma Sources and Uses
Sources of Funds	Amount	Per Unit
New First Mortgage Loan	$0	$0
Existing Replacement Reserve Balance	$0	$0
Existing Balance in Other Escrow Accounts	$0	$0
Low Income Housing Tax Credit Equity - 4%	$0	$0
Low Income Housing Tax Credit Equity - 9%	$0	$0
Other #1	$0	$0
Other #2	$0	$0
Other #3	$0	$0
Other #4	$0	$0
Other #5	$0	$0
Other #6	$0	$0
Total Sources of Funds	$0	$0
Uses of Funds	Amount	Per Unit
Acquisition Costs	$0	$0
Construction Costs	$0	$0
Relocation Costs	$0	$0
Professional Fees	$0	$0
Loan Fees and Costs	$0	$0
Reserves	$0	$0
Developer Fee	$0	$0
Total Uses of Funds	$0	$0
Stabilized Cash Flow Pro Forma
	Total	PUPA
Gross Potential Rents (Apartments)	$0	$0
Gross Potential Rents (Other)	$0	$0
Gross Potential Rents (Commercial)	$0	$0
Vacancy Loss and Bad Debt Loss/Concessions	$0	$0
Other Income	$0	$0
Effective Gross Income	$0	$0
Total Operating Expenses	$0	$0
Annual Deposit to Replacement Reserve	$0	$0
Effective Gross Income	$0	$0
#DIV/0!	$0	$0
Operating Cash Flow	$0	$0
Owner's Explanation of the Proposed Total Operating Cost being less then 85% of the 3 Year Historical Operating Expenses
3 Year Historical Average Comparison	2010	2011	2012		Average		Proposed
	$0	$0	$0		$0		$0
Explanation
PHA's Explanation of the Capital Needs and Replacement Reserves Estimates
Explanation
Discussion of QAP timing
Discussion of QAP timing
Demonstration of recent success obtaining 9% LIHTCs
Demonstration of recent success obtaining 9% LIHTCs
Likelihood of obtaining 9% LIHTCs
Likelihood of obtaining 9% LIHTCs
Statement of Lender / Equity Provider:
The project appears feasible for ABC Mortgage Company to fund. Our general repayment terms and any conditions are stated above and/or in the comment block below. ABC Mortgage Company understands and acknowledges the RAD program requirements and policies and agrees to cooperate with the applicable RAD processes, as appropriate. This letter of interest/intent is not a firm commitment. Final approval will be contingent on the results of ABC Mortgage Company due diligence process and approvals.
State any exceptions
ABC Mortgage Company: By Pat Winslow (President)
					February 3, 2012
Authorized Signature:					Date: February 03, 2012

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Sheet 4: Choice Mobility Let Agreement

If required, this worksheet should be printed, signed and attached as a PDF to the application email

Identify the PHA that is contributing choice-mobility vouchers:

Identify the person who will sign on behalf of the PHA that is contributing vouchers:

Name

Title

Date Signed

Identify the owner of the project that is receiving choice-mobility vouchers:

Identify the person who will sign on behalf of the owner of the project that is receiving vouchers:

Name

Title

Date Signed

Attachment 1D – Choice-Mobility Letter Agreement

Between (contributing vouchers)

And (receiving vouchers)

Regarding RAD Application for

1.

Capitalized terms herein shall have the meaning given to them in Notice PIH-2012-32 (the "Notice") and in the Rental Assistance Demonstration ("RAD").

2.

certifies that he or she is the of and that he or she has been authorized by to enter into this Choice-Mobility Letter Agreement regarding the RAD application submitted by ().

3.

certifies that he or she is the of and that he or she has been authorized by to enter into this Choice-Mobility Letter Agreement regarding the RAD application submitted by ().

4.

, through its duly authorized representative, commits that if the subject project converts assistance under RAD, will provide Section 8 Housing Choice Vouchers to the assisted residents of the subject project to achieve the choice-mobility objective described in Section 1.7(C)(5) of the Notice. agrees that this commitment is binding on without regard to whether any RAD application submitted by is selected for participation in RAD.

5.

acknowledges that if the subject project's application for RAD conversion is incomplete, fails to meet threshold criteria, or is submitted outside of the Initial Application Period, will not earn any Ranking Factor. However, if such application is submitted during the Initial Application Period, is complete, and meets threshold criteria, then will earn a Ranking Factor regardless of whether such application is selected, or, once selected, is withdrawn or terminated.

6.

acknowledges that if the subject project's application for RAD conversion is incomplete, fails to meet threshold criteria, or is submitted outside of the Initial Application Period, will not earn any Ranking Factor.

: By ()

December 30, 1899

Signature:

Date:

: By ()

December 30, 1899

Signature:

Date: